The Hindu : New Exim policy likely to be `export-oriented'

Online edition of India's National Newspaper
Saturday, Mar 30, 2002

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New Exim policy likely to be `export-oriented'

By Sushma Ramachandran

NEW DELHI MARCH 29. A comprehensive package of measures to boost exports is expected to be outlined in the new five-year Export-Import Policy 2002-2007, with a focus on the agricultural sector and development of Special Economic Zones.

The first such policy to be formulated after the system of quantitative restrictions (QRs) was phased out, it assumes significance as the focus will no longer be on import liberalisation. It is thus slated to be purely an "export-oriented" policy since the era of import controls is now over.

The policy to be announced by the Commerce and Industry Minister, Murasoli Maran, on March 31, will set the tone for the next five years as the tenure of the previous five-year policy — from 1997 to 2002 — has now ended. The new policy is being finalised in the backdrop of a vastly different world trade scenario and free import regime within the country.

It has to ensure that the country is able to step up exports despite the global recession and crippling impact of the terrorist acts of September 11 last year on the world economy. Globalisation has meant that Indian exports have been severely affected by the drastic fall in demand in major markets such as the U.S. and the European Union.

Official sources say the new policy will try to provide all facilities to boost exports, including cutting red tape and improving infrastructure. The Special Economic Zones (SEZs) are of importance in the new policy but these are long gestation projects and the problem of raising export growth in the short and medium term has to be tackled through other policy measures.

Even so, the Commerce Ministry has held a series of discussions with the Finance Ministry on providing fiscal concessions for investors in the SEZs on the pattern of the hugely successful Chinese export zones.

The Commerce Ministry is also expected to dovetail the recently released medium term export strategy with the five-year Exim policy as it has already surveyed the potential markets and products where a focus is needed. Similarly, the new policy will be co-terminus with the Tenth Plan period, making it easier to link up overall plan programmes in other sectors.

Sources say the policy will aim at raising India's share of world trade to one per cent, a target that has so far proved elusive.

The agricultural sector is considered to be extremely promising and agro-exports have been rising rapidly. The newly created agri-export zones have also taken off well with States showing great interest, sources say.

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